For the week, CSI300 was up 0.5 per cent, while SSEC added 0.2 per cent.

Over the weekend, Premier Li Keqiang said China would strike a balance between financial stability, gradual deleveraging, and steady economic growth, noting the government was capable of maintaining stability in the financial markets.

However, according to most analysts Reuters spoke to, market sentiment remains fragile and investors are expected to be cautious, with some saying de-leveraging remains the direction of Beijing's policy despite soothing regulatory rhetoric.

Investors are also worried that China's economy could witness renewed slowdown as a recovery - triggered mainly by government stimulus - peters out, said Yang Hai, strategist at Kaiyuan Securities Indeed, an official survey published this week showed Chinese stock investors' confidence fell for a second straight month in April, to the lowest in seven months, dented by economic concerns.

For the week, consumer stocks outperformed among main sectors, with the index tracking those stocks rallying 4.7 per cent in its best week in 10 months, while banking stocks dragged the most.